2022 Half Year Results
Unless otherwise stated, all figures are on a Business performance basis and are in US Dollars. Comparative figures for the Income Statement relate to the period ended 30 June 2021 and the Balance Sheet as at 31 December 2021. Alternative performance measures are reconciled within the ‘Glossary – Non-GAAP measures’ at the end of the Financial Statements.
EnQuest Chief Executive, Amjad Bseisu, said:
“Strong production, together with high commodity prices saw the Group generate free cash flow totalling $332 million in the first half of 2022, driving a significant reduction in net debt to $880 million. Consequently, our net debt to 12-month EBITDA ratio has reduced to 0.9x, demonstrating excellent progress towards our 0.5x target.
“We have a significant work programme to deliver in the second half of the year but remain on track to deliver our operational targets in our core business.
“We are also committed to supporting the UK’s twin objectives of delivering energy security and decarbonisation. Through our Infrastructure and New Energy business, we intend to repurpose and utilise existing assets to progress new energy and decarbonisation opportunities, including carbon capture and storage, electrification, and the production of green hydrogen.
“We remain focused on further strengthening our balance sheet, which will position us well to utilise our capability to unlock organic and inorganic growth opportunities, including the capital-light infrastructure and new energy business, and deliver returns to shareholders in the future.”
H1 2022 performance
- Group net production averaged 49,726 Boepd (2021: 46,187 Boepd)
- Revenue and other operating income of $943.5 million (2021: $518.3 million) and adjusted EBITDA of $536.3 million (2021: $345.4 million) reflects materially higher realised oil prices of $89.9/Boe (2021: $62.8/Boe), including the impacts of the Group’s hedge programme, and higher production
- Operating costs increased to $208.4 million (2021: $153.0 million), primarily reflecting the addition of Golden Eagle to the portfolio, increased maintenance and well intervention activity, and increased diesel and emissions trading certificate prices
- Cash generated from operations was $522.7 million (2021: $287.9 million); with cash capital expenditure of $54.7 million (2021: $15.9 million) and cash abandonment expenditure of $28.2 million (2021: $38.7 million)
- Strong free cash flow generation of $332.1 million (2021: $144.5 million)
End June net debt reduced by $342.0 million from year end; net debt to adjusted EBITDA reduced to 0.9x
- At 30 June 2022, net debt reduced to $880.0 million (end 2021: $1,222.0 million) reflecting strong free cash flow generation. Group net debt to last-12 months adjusted EBITDA ratio as at 30 June 2022 is 0.9x, down from 1.6x at the end of 2021
- At the end of June, $115.0 million remained outstanding on the Group’s senior secured debt facility (‘RBL’) following accelerated repayments totalling $300.0 million
- Completed partial refinancing and extended the maturity of the Sterling retail bond on 20 April, with the new October 2027 9% retail bond issue totalling £133.3 million. The remaining October 2023 7% retail bond in issue is £111.3 million
- At the end of June, total cash and available facilities were $467.0 million (end 2021: $318.7 million)
- At 31 August 2022, net debt had been further reduced to $817.6 million
- The outstanding RBL was reduced to $90.0 million
- Executed $33.4 million (4.0%) of buy backs of the October 2023 7% high yield bonds in July and August bringing the total outstanding at the end of August down to $793.8 million
Guidance and outlook
- 2022 average net Group production is expected to be within the guidance range of 44,000 Boepd and 51,000 Boepd reflecting strong first half performances across the portfolio and the impacts of the planned well programme and maintenance shutdowns in the second half of the year
- Operating costs, cash capital and abandonment expenditures are all expected to be in line with prior guidance
- EnQuest has hedged a total of c.3.4 MMbbls with an average floor of c.$60/bbl and ceiling price of c.$79/bbl in the second half of 2022. For the first half of 2023, the Group has hedged a total of c.3.5 MMbbls with an average floor price of c.$57/bbl and an average ceiling price of c.$77/bbl
- Following the enactment of the Energy Profits Levy, EnQuest expects to pay cash tax in the UK in 2022 and for the duration of the levy period
Production and financial information
|Business performance measures||For the period to 30 June 2022||For the period to 30 June 2021||Change|
|Revenue and other operating income ($m)1||943.5||518.3||82.0|
|Realised oil price ($/bbl)1,2||89.9||62.8||43.2|
|Average unit operating costs ($/Boe)2||22.7||19.3||17.6|
|Adjusted EBITDA ($m)2||536.3||345.4||55.3|
|Free cash flow($m)2||332.1||144.5||129.8|
|30 June 2022||31 December 2021|
|Net (debt)/cash ($m)2||(880.0)||(1,222.0)||(28.0)|
|Statutory measures||For the period to 30 June 2022||For the period to 30 June 2021||Change|
|Reported revenue and other operating income ($m)3||838.8||481.3||74.3|
|Reported gross profit ($m)||252.8||148.1||70.7|
|Reported profit/(loss) after tax ($m)||203.5||(56.4)||-|
|Reported basic earnings/(loss) per share (cents)||11.1||(3.4)||-|
|Cash generated from operations ($m)||522.7||287.9||81.6|
|Net increase/(decrease) in cash and cash equivalents ($m)||99.5||53.3||86.7|
1 Including realised losses of $162.3 million (2021: realised losses of $32.9 million) associated with EnQuest’s oil price hedges
2 See reconciliation of alternative performance measures within the ‘Glossary – Non-GAAP measures’ starting on page 31. Note, EnQuest defines net debt as excluding finance lease liabilities
3 Including net realised and unrealised losses of $267.0 million (2021: net realised and unrealised gains of $69.9 million) associated with EnQuest’s oil price hedges
Summary financial review
(all figures quoted are in US Dollars and relate to Business performance unless otherwise stated)
Revenue for the six months ended 30 June 2022 was $943.5 million, 82.0% higher than the same period in 2021 ($518.3 million), reflecting the materially higher oil prices and the contribution of Golden Eagle. Revenue is predominantly derived from crude oil sales, which for the first half of 2022 totalled $851.2 million, 73.5% higher than in the same period of 2021 ($490.5 million). Revenue from the sale of condensate and gas in the period was $252.9 million (2021: $57.9 million), primarily reflecting higher market prices for condensate and gas. Gas revenue mainly relates to the onward sale of third-party gas purchases not required for injection activities at Magnus.
The Group’s commodity hedges and other oil derivatives contributed $162.3 million of realised losses (2021: losses of $32.9 million), as a result of the timing at which the hedges were entered into. The Group’s average realised oil price excluding the impact of hedging was $111.0/bbl for the six months ended 30 June 2022, compared to $67.3/bbl received during the first half of 2021. The Group’s average realised oil price including the impact of hedging was $89.9/bbl in the first half of 2022, 43.2% higher than during the first half of 2021 ($62.8/bbl).
Total cost of sales were $585.6 million for the six months ended 30 June 2022, 75.7% higher than in same period of 2021 ($333.3 million).
Operating costs increased by $55.4 million to $208.4 million (2021: $153.0 million) primarily as a result of higher production costs reflecting the Golden Eagle acquisition in October 2021, higher maintenance and workover activities and the impact of higher market prices on diesel and emissions trading certificates. Unit operating costs increased by 17.6% to $22.7/Boe (2021: $19.3/Boe) reflecting higher costs partially offset by higher production.
Total cost of sales included non-cash depletion expense of $174.2 million, 13.8% higher than in the same period in 2021 ($153.1 million), mainly reflecting the impact of the Golden Eagle acquisition.
Also within cost of sales, the credit relating to the Group’s lifting position and hydrocarbon inventory for the six months ended 30 June 2022 was $29.9 million (2021: credit of $26.1 million). The credit in the period reflects a switch to a $5.2 million net underlift position at 30 June 2022 from an $18.0 million net overlift position at 31 December 2021.
Other cost of sales, which forms part of the total cost of sales balance, of $232.9 million were higher than the same period in 2021 ($53.3 million), reflecting the higher cost of Magnus-related third-party gas purchases following the increase in the market price for gas which is offset by gas sales presented in revenue.
Adjusted EBITDA for the six months ended 30 June 2022 was $536.3 million, up 55.3% compared to the same period in 2021 ($345.4 million), driven by higher revenue.
The tax charge for the six months ended 30 June 2022 was $142.4 million (2021: $19.4 million tax credit). The tax charge in the period is largely non-cash and reflects the tax impact on the Group’s increased profit before tax. Ring Fence Expenditure Supplement (‘RFES’) on UK activities, which would historically have provided an offset to the UK tax charge, ceased to be available to claim from the end of 2021. Had the Energy Profits Levy (‘EPL’) been enacted in the interim period, a cash tax liability of $5.6 million would have been recognised in respect of Business Performance in the period 26 May 2022 to 30 June 2022.
Remeasurements and exceptional items were a net post-tax profit of $23.5 million for the six months ended 30 June 2022 (2021: loss of $164.6 million). Revenue included unrealised lossesof $104.7million in respect of the mark-to-market movement on the Group’s commodity contracts (2021: unrealised lossesof $37.0million). Other remeasurements and exceptional items includes a non-cash impairment reversal of $10.1 million (2021: nil) and a $31.0 million loss (2021: $27.5 million gain) in relation to the fair value recalculation of the Magnus contingent consideration reflecting a forecast increase in Magnus future cash flows, both as a result Group’s increased short-term oil price forecast. A net tax credit of $163.4 million (2021: charge of $124.9 million) has been presented as exceptional, representing the non-cash recognition of $107.9 million of undiscounted deferred tax assets due to the Group’s increased short-term oil price assumptions and the tax impact of the above items. Had the EPL been enacted in the interim period, a cash tax liability of $14.4 million would have been recognised in respect of Remeasurements and exceptional items in the period 26 May 2022 to 30 June 2022.
The Group continues to have unrestricted access to its UK North Sea corporate tax losses, subject only to generating suitable future profits, which at 30 June 2022 were $2,627.7 million (2021: $3,011.0 million).
The Group’s reported net cash flow from operations for the six months ended 30 June 2022 was $498.4 million (2021: $246.9 million). Free cash flow for the six months ended 30 June 2022 was $332.1 million (2021: $144.5 million) reflecting the materially higher oil price resulting in higher cash receipts. Strong free cash flows enabled the Group to make early voluntary repayments totalling $300.0 million of the Reserve Based Lending (RBL) facility.
Net debt at 30 June 2022 was $880.0 million, a decrease of 28.0% compared to 31 December 2021 ($1,222.0 million) and includes $202.5 million of payment in kind interest (“PIK interest”) that has been capitalised to the principal of the facility and bonds pursuant to the terms of the Group’s November 2016 refinancing (31 December 2021: $225.0million). As at 31 August 2022, net debt had been further reduced to $817.6 million.
|Average daily production on a net working interest basis||For the period to 30 June 2022||For the period to 30 June 2021|
- Golden Eagle1
- Other Upstream2
1 Golden Eagle acquisition completion date was 22 October 2021
2 Other Upstream: Scolty/Crathes, Greater Kittiwake Area and Alba
3 UK Decommissioning: the Dons
Average production for the first six months of 2022 was 12,754 Boepd, 7.9% lower than the first half of 2021. Production was impacted by a seawater lift pump failure and a well integrity failure in June. The pump was replaced in July with additional spares purchased to mitigate potential future risks. The Group’s well intervention programme is ongoing, with two wells successfully returned to service in the first half of 2022. The North West Magnus production well, which is the longest reservoir section drilled this century at 1,914 metres with the longest liner ever run at Magnus, has been successfully drilled and logged in late July and is expected online around the end of September. The programme in the second half of the year continues to evolve as EnQuest focuses on the most value-accretive opportunities, resulting in the Group prioritising a number of interventions to mitigate well failure risk and the return to service of the June well failure. Further infill drilling is now expected in 2023.
The planned three-week maintenance shutdown is underway, with production expected to resume later this month.
Average production of 19,527 Boepd (27,698 Boepd gross) (2021: 23,690 Boepd net; 33,603 Boepd gross) is above the top end of the Group’s 2022 guidance. The floating production, storage and offloading vessel (‘FPSO’) delivered top quartile performance, with production efficiency of 92% and water injection efficiency of 95%, with the reduction in production from 2021 reflecting the impact of natural decline. The Group has optimised its planned third-quarter maintenance activities, which are scheduled to start in early September, allowing Kraken to continue to operate on a single processing train for one week of the two-week programme duration. Dual-train operations are expected to resume later in September.
Near-field drilling and subsea tie-back opportunities are being assessed. Following completion of a 3D seismic campaign in 2021, work is ongoing to interpret the seismic data in order to evaluate fully the development potential of the western area of the field, in addition to supporting ongoing optimisation of the main Kraken field, including potential infill opportunities. The current expectation is the execution of an initial side-track opportunity in 2024, before future drilling of wells in the western area. Equipment orders are likely to be placed during 2022 in order to accommodate significant supply chain lead times.
Year to date June production was 7,060 Boepd. Production efficiency remained strong at 95%, including an optimised annual shutdown which was executed in two days instead of four, partially offset by plant instability caused by gas turbine trips and natural decline. These issues are being addressed by the operator, with further optimisation activities, including well work, planned in the second half of the year.
The joint venture has approved a two infill well drilling campaign to commence at the end of the third quarter of 2022, with first oil expected around the end of the first quarter of 2023. EnQuest is proactively working with the operator to share insights to optimise drilling performance and future well work.
Other Upstream assets
Production for the first six months of 2022 averaged 4,081 Boepd (2021: 3,504 Boepd). This was driven by uptime of 92% at the Greater Kittiwake Area (‘GKA’), and the continued positive impact of work completed in the first quarter to optimise gas lift delivery pressure. The planned 11-day GKA shutdown was completed three days ahead of schedule, with the asset back online in August. EnQuest has also implemented a gas accumulator to mitigate the need for import gas to support GKA’s re-start requirements.
Alba continues to perform in line with Group expectations.
EnQuest is working with its partners to progress field development studies for Bressay and the Bentley team is focused on re-evaluation of the existing subsurface data.
For the first six months of 2022, average production in Malaysia was 6,304 Boepd, representing a 31% increase over the same period last year. This increase was driven by the riser pipeline replacement during the first quarter of 2022 and completion of three out of the four planned workovers. The fourth workover was completed in July. In aggregate, the workover programme was delivered on budget and ahead of schedule with production in line with expectations. The Group has also successfully executed a three-well plug and abandonment (‘P&A’) campaign at PM8/Seligi. In recognition of this workover and P&A performance, EnQuest received three Petronas Recognition Awards centred on a commitment to safety, application of new technology to leverage efficiencies in schedule and cost savings.
Following the mobilisation and installation of the drilling rig at the Seligi-C satellite platform, and the drilling of a pilot hole during June, the infill drilling campaign has commenced with the Group’s first horizontal well at PM8/Seligi being brought on stream in July, with higher than expected initial production rates. The drilling rig subsequently mobilised to the Seligi-D satellite platform, where two more horizontal wells are expected to be delivered in 2022.
Looking ahead, the Group has sanctioned a three well infill drilling programme in 2023, in alignment with the established asset strategy.
On Block PM409, an area containing several undeveloped discoveries and situated close to the Group’s existing PM8/Seligi PSC hub, geotechnical studies have been completed, and a proposed exploration well has been identified. The Group has a commitment to drill the exploration well by the end of the PM409 exploration period, which ends in December 2023.
Heather and Thistle P&A campaigns are progressing well with six wells completed at Heather and nine wells completed at Thistle. The Group continues to demonstrate and develop capability in delivering these significant decommissioning projects and remains on track to complete the P&A of 16 wells at each installation in 2022.
The tender processes for heavy lift vessels for Heather and Thistle topsides and jacket removals has concluded. Contracts to complete those scopes, which have scheduled windows between 2024 and 2026, are expected to be awarded in the second half of 2022. The Group is aware of increased competition in the heavy lift vessel market, with the evolution of several large-scale renewable projects being sanctioned by the governments of European countries, and has moved to manage execution of heavy lift scopes within multi-year windows in order to retain flexibility and mitigate availability concerns.
At the Dons, subsea infrastructure removal within the 500-metre zone is progressing as expected, with two phases completed during the first half of the year, and the final phase scheduled for completion in September. The North Sea Transition Authority (‘NSTA’) recently recognised the floating production facility off station project as an example of exemplary execution and best-in-class performance in the North Sea for prompt asset removal, reduction of post-cessation of production operating expense and CO2 reduction.
The EnQuest Producer FPSO remains in warm stack at Nigg Energy Park while the Group continues to evaluate options, which include utilisation on a future project or sale.
Infrastructure and New Energy
The Sullom Voe Terminal (‘SVT’) and its related infrastructure maintained safe and reliable performance, with 100% export service availability during the first half of 2022.
EnQuest continues to develop cost-effective and efficient plans to transform the terminal and prepare and repurpose the site to progress decarbonisation opportunities at scale, focused on carbon capture and storage (‘CCS’), electrification and green hydrogen. The terminal site offers several unique competitive advantages, including a 1,000-acre industrial site with access to existing oil and gas pipeline infrastructure, a deep-water port and jetties, the highest wind capacity factor across Europe, and a highly skilled workforce and local supply chain. In advancing its Infrastructure and New Energy business, the Group will maintain its focus on capital discipline and, having secured exclusivity from the Shetland Islands Council to progress new energy opportunities on the site to achieve value for the Council, the Shetland community and EnQuest, the Group is well placed to deliver on its new energy ambitions alongside strategic delivery partners.
Carbon Capture and Storage
The availability of the deep-water port and jetties and a pipeline network linked to several well-understood offshore reservoirs presents the opportunity to repurpose infrastructure to import and permanently store material quantities of CO2 from isolated emitters in the UK, Europe or further afield.
EnQuest has conducted initial phases of feasibility and economic screening work in respect of this carbon storage concept. These studies have indicated the capability of the existing infrastructure, including the EnQuest operated East of Shetland pipeline system, and storage sites to support a project of up to 10 million tonnes per annum of CO2. In May 2022, the Group made two CCS licence area nominations in locations which are both accessible from EnQuest’s existing infrastructure. These were both accepted and EnQuest expects to make two applications in respect of these licence areas in the forthcoming NSTA UK offshore CCS licensing round, with results expected to be announced in the first quarter of 2023.
EnQuest is assessing the potential to leverage its existing infrastructure and subsea projects expertise to facilitate the electrification of nearby offshore oil and gas assets and planned developments by way of a grid connection supplemented with renewable power. This would lead to significant emissions reductions for platforms which are expected to operate into the 2050’s. In addition, the Group is also currently assessing onshore wind potential and a new power solution for the Sullom Voe Terminal, which has the potential to significantly reduce the Group’s carbon footprint.
The Group is exploring the potential for repurposing areas of the existing SVT site and harnessing the advantaged natural wind resource around Shetland for the production of green hydrogen and derivatives at export scale to provide a low carbon alternative fuel which could help to decarbonise a number of industries.
Liquidity and net debt
The Group generated strong free cash flows during the first half of 2022, resulting in net debt of $880.0 million at 30 June 2022, down $342.0 million since the end of 2021. This reduction was driven by accelerated repayments totalling $300.0 million on the Group’s RBL facility, with drawings of $115.0 million at 30 June 2022, significantly ahead of the required amortisation schedule. EnQuest’s 12-month net debt to adjusted EBITDA ratio at 30 June 2022 was 0.9x and the Group had total cash and available facilities of $467.0 million, including restricted funds and ring-fenced funds held in joint venture operational accounts totalling $286.1 million (31 December 2021: $318.7 million and $191.4 million, respectively).
In line with EnQuest’s continued focus on deleveraging, the Group has further reduced its net debt to $817.6 million at the end of August. The outstanding RBL facility was reduced to $90.0 million and the Group bought back and cancelled $33.4 million of its 2023 7% high yield bonds across July and August, leaving $793.8 million outstanding. The Group may, from time to time, purchase its outstanding notes in open-market purchases and/or privately negotiated transactions and upon such terms and at such prices as it may determine. The Group will evaluate any such transactions in light of then-existing market conditions, taking into account the Group’s current liquidity and prospects for future access to capital. The amounts involved in any such transactions, individually or in the aggregate, may be material. At the same time, the Group continues to explore options to refinance its high yield bond ahead of maturity in October 2023.
The Group remains on track to achieve net production between 44,000 and 51,000 Boepd, with a significant well work and drilling campaigns progressing across the portfolio, partially offset by natural declines and planned maintenance shutdowns at Magnus and Kraken in the third quarter.
Full year expectations for operating, cash capital and abandonment expenditures remain unchanged from the Group’s original guidance at approximately $430 million, $165 million and $75 million, respectively, with capital and abandonment spend in particular expected to be higher during the second half of the year, in line with activity. EnQuest remains focused on cost discipline and has been proactive in engagement with its global supply chain to mitigate the impacts of cost inflation within the current year.
Following the enactment of the EPL, EnQuest expects to pay cash tax in the UK in 2022 and for the duration of the levy period. The first payment on account under the EPL will be paid in December 2022. EnQuest remains committed to investment in the North Sea and is reviewing future capital expenditure programmes in light of the additional investment allowances available under the levy.
EnQuest hedged a total of c.8.7 MMbbls for 2022 predominantly using costless collars, with an average floor price of c.$63/bbl and an average ceiling price of c.$77/bbl. For the period July to December 2022, c.3.4 MMbbls of production remains hedged with an average floor price of c.$60/bbl and an average ceiling price of c.$79/bbl.
Environmental, Social and Governance
The health, safety and wellbeing of EnQuest’s people is its top priority and the Group has continued to perform well in this regard in the six months to end June, recording a Lost Time Incident (‘LTI’) frequency1 of zero (Full year 2021: 0.21). However, during August the Group saw its first LTI in 10 months. EnQuest has a strong safety culture and will remain focused on continuous improvement to prevent personal injuries, dangerous occurrences and hydrocarbon releases.
In line with EnQuest’s purpose of delivering creative solutions through the energy transition and society’s need for fossil fuels to meet today’s energy demand while moving towards lower carbon energy in the future, the Group is engaged across the energy spectrum. Managing existing assets in a responsible and sustainable manner is a key part of the energy transition. EnQuest has a disciplined strategy of acquiring existing hydrocarbon assets, safely driving production and cost efficiencies, maturing additional reserves and extending asset lives through focused maintenance and enhancement programmes and identifying repurposing opportunities. This strategy supports security of energy supply and helps to maximise economic recovery of those assets.
Emissions reductions are clearly a core focus area for the Group and EnQuest is committed to playing its part in the achievement of national emissions reduction targets and the drive to ‘net-zero’, with the Infrastructure and New Energy business having overall responsibility for delivering the Group’s emission reduction objectives. Since 2018, UK Scope 1 and 2 emissions
1 Lost Time Incident frequency represents the number of incidents per million exposure hours worked (based on 12 hours for offshore and eight hours for onshore)
have reduced by more than 40%, which is significantly ahead of the UK Government’s North Sea Transition Deal target of achieving a 10% reduction in Scope 1 and 2 CO2 equivalent emissions by 2025 and is close to the 50% reduction targeted by 2030.
Corporate governance is an essential part of EnQuest’s governance framework, supporting both risk management and the Group’s core Values. The Board remains focused on Board and executive succession planning. In January 2022, Rani Koya joined the EnQuest Board, bringing extensive industry and renewable energy experience. As part of the Group’s planned rotation of Directors, Philip Holland stepped down from the Board of Directors and as Chair of the Safety, Climate and Risk Committee following the Group’s AGM in June, with Liv Monica Stubholt assuming the role of Chair. Following Philip’s departure, EnQuest’s Board diversity is in line with the original Hampton-Alexander recommendations. Also in June, Martin Houston notified the Board of his intention to step down as Non-Executive Chairman to focus on his other business interests. The search process for Martin’s successor is underway and is being led by the Group’s Senior Independent Director, Howard Paver. In August, Salman Malik, previously the Group’s Managing Director - Corporate Development, Infrastructure and New Energy and a member of the Group's Executive Committee, joined the Board as Chief Financial Officer, replacing Jonathan Swinney who informed the Board of his intention to step down in March 2022.
For further information please contact:
Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Salman Malik (Chief Financial Officer)
Ian Wood (Head of Investor Relations, Communications & Reporting)
Craig Baxter (Senior Investor Relations & Communications Manager)
Tel: +44 (0)20 7353 4200
Notes to editors
This announcement has been determined to contain inside information. The person responsible for the release of this announcement is Paul Massie, General Counsel Delegation of Authority and Interim Company Secretary.
EnQuest is providing creative solutions through the energy transition. As an independent energy company with operations in the UK North Sea and Malaysia, the Group aims to responsibly optimise production, leverage existing infrastructure, deliver a strong decommissioning performance and explore new energy and further decarbonisation opportunities by focusing on operational excellence, differential capability, value enhancement and financial discipline.
EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm.
Please visit our website www.enquest.com for more information on our global operations.
Forward-looking statements: This announcement may contain certain forward-looking statements with respect to EnQuest’s expectations and plans, strategy, management’s objectives, future performance, production, reserves, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this announcement should be construed as a profit forecast. Past share performance cannot be relied upon as a guide to future performance.